Saturday, May 31, 2008

2004 Flashback: Speculators Got Blamed Then, Too


Business Week (August 30, 2004) -- Are Speculators Driving Up The Price Of Oil? There is no doubt most of oil's huge price leap -- up 40% in the past year, to $45 a barrel (see chart above) -- is grounded in fundamental supply-and-demand issues. But how much of crude's big bounce is also because of speculation -- hedge funds and other financial players pushing up the price in futures markets? That's tougher to answer, but these traders are surely adding froth to an already superheated market.

3 Comments:

At 6/01/2008 3:06 AM, Blogger rufus said...

Or, maybe it's just THIS.

 
At 6/01/2008 4:08 AM, Anonymous E. Harokopos said...

or this:

http://www.globalresearch.ca/index.php?context=va&aid=8878

 
At 6/01/2008 4:29 AM, Anonymous E.Harokopos said...

Dr. Perry, this paper discusses the other side of the story, peak oil. It has a lot of details and data:

http://www.simmonsco-intl.com/files/Another%20Nail%20in%20the%20Coffin.pdf


It appears truth lies in between. Price of oil is in an uptrend due to peak oil and increased demand but there is a significant speculative premium.

 

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